Is it Time to Say Good Bye to Dubai – Is Financial Collapse Inevitable?

Is it Time to Say Good Bye to Dubai – Is Financial Collapse Inevitable?
By Lance Winslow

The city of Dubai is among one of the most modern cities throughout the world and yet, it is additionally built on obtained loan from Swiss financial institutions. As you could or may unknown, the banking crisis that took place in the USA had significant causal sequence all over the world.

This is because many international financial institutions bought the mortgage loan packages for financial investment. These loan bundles were wrongly ranked and thus, insured, and all those banks that joined what appeared to be a strong investment are now paying a substantial price.

With the close to collapse of the Swiss financial institutions, the concern is will they still have the ability to provide car loans to the federal government there and the construction business operating in Dubai? That is a few of the most expensive realty in the world. Those structures are gorgeous, however are they are good collapse due to this banking crisis.

For far as well long the promoters of Dubai have revealed the extra of greed and the care free spending of oil cash that collateralized these substantial lendings from Swiss banks. Now with oil rates down below $70 each barrel and headed to $50 per barrel, one has to ask if they will have the ability to service the financial obligation from the Swiss financial institutions that has currently been borrowed.

And also that the Swiss banks could not agree to offer anymore money and there are significant projects with gigantic high-rises that are half constructed and waiting on further financing to finish the tasks. Few are discussing the full issues of an economic and realty collapse in Dubai, yet those that are, certainly, are quite anxious, also they should.

It is not my intent to be the purveyor of problem and please do not shoot the messenger, yet we need to all realize that the lush and illogical spending could never ever last forever. There will constantly be a fact check, there always is and Dubai is no exception. Please consider this and the irresponsibility of the Dubai realty bubble.